Employment expenses - Two vehicles - Class 10
You have changed your vehicle in the tax year, and both vehicles
- the old and the new - are in the same class of cars, namely the
cars that are less than $30,000 before taxes.
At first, you must calculate all the expenses that you've
incurred for both vehicles, such as fuel costs, insurance expenses
and others. Furthermore, you will have to calculate the total
kilometers (KM) traveled in the tax year as well as the number of
kilometers traveled for business purposes. To do so, follow the
steps below:
1- On the "Left side menu of the Interview
tab", select the "Self-employment income"
section.
2- Complete the "Business ID" and "Income,
expenses" pages according to the information that you
have. Click on "Next" at the bottom of the page
after you've completed each page.
3- At the subsection "Motor vehicle expenses"
page, in the first part, the information on your hold vehicle were
carried over. Make sure that "Class 10" has been
selected for the CCA class of the vehicle.
4- On the second (2nd) section of this page, "Addition of a
vehicle" on line "Description of the vehicle and
vehicle cost" enter a brief description of the car and its
acquisition cost.
5- At the line "Application of half-year rule to current
year additions", choose "Yes" from the
drop-down menu.
6- In the third (3rd) section "Disposition of the
vehicle", enter the information on selling your old
vehicle. As the price sold you enter the total amount online
"Proceeds of disposition of an asset".
7- For the line "ABC of the disposition", enter
the Adjusted Cost Base of the vehicle sold.
8- At the line "Did you liquidate all asset in this
class?" the answer is "No".
9- For the line "ACB of the disposition", indicate
the total amount received in payment. If the proceeds of the
disposition of the property exceed the ACB, the result will be a
capital gain.
10- In this case, return to "Interview setup" and
choose "Investment income and expenses" icon,
check "Capital gains (or losses) and capital gain
history" and click "Next" at the bottom
of the page.
11- You must enter the gain separately under the section
"Capital gains (or losses) & ABIL" and on the
screen to the right, select "Real estate, depreciable
property and others properties" option.
12- On the page that appears, enter the information on the sale of
your vehicle.
13- If you want to limit the CCA, for the line "Limit to
the CCA of this vehicle (leave blank for maximum
CCA)", enter the desired amount. Otherwise, leave the
field blank to obtain the maximum CCA.
The program will carry over the amounts on lines 9281
and 9936 of federal form T2125 and on lines 220 and 240 of
Quebec form TP-80.
Also, if you made a capital gain, Schedule
3, and schedule G for Quebec residents, will be
generated by the program.
For more information, consult the CRA's guide by clicking on the
following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044.html
NOTE: We suggest you keep a record for each
year you claim expenses. Mainly for using your vehicle that
statement must set out firstly, total kilometers traveled, and
secondly the mileage for your job and all expenses incurred in the
tax year.
ID: 20211022092134DE.xml
Webpage: KPA350-20211022092134DE.htm
